Global CSR Trends That Address Climate Change

Most businesses still define "sustainability" as reducing harm—using less, emitting less, wasting less. It’s definitely a start, and there’s nothing bad about that, but I think we’re seeing signs that we can go beyond. You may have read about regenerative agriculture and seen the marketing statements on your milk and sugar at the grocery store. But this idea goes beyond the farm to ‘regenerative business’ as a whole. Where enterprise isn’t just aiming to be ‘less bad’ but rather a net positive — connecting ecosystem restoration, resilience, social and economic development to business outcomes. No matter the vertical or industry, there are now opportunities and models being tested to see regeneration in action. Consider: In manufacturing: Companies are beginning to adopt regenerative design in their supply chains. Many examples now exist of products that don’t just reduce carbon emissions but rather remove them resulting in carbon-negative outputs. Case in point ▶️ Aquafil Group https://www.aquafil.com/ In finance: Regenerative investing goes beyond ESG screening to direct capital toward enterprises that build local economic resilience and long-term environmental health. Not just short-term yield. It’s value creation that compounds across generations. Case in point ▶️ Triodos Bank https://www.triodos.co.uk/ In tech: Innovators are deploying next-gen energy systems that store renewable power, operate off-grid or benefit grid stability, and scale modularly to meet demand—turning data centers into active participants in a cleaner energy future. Case in point ▶️ Exowatt https://lnkd.in/edJ7rWYK In corporate strategy: Businesses can turn their brand and product into enhanced models that recycle capital into system health. This might be through diverse areas like manufacturing processes, regenerative ag, empowering women, or the decarbonization of supply chains—not as CSR, but ultimately benefiting the planet and the bottom line. Case in point ▶️ VEJA https://lnkd.in/ekRNFXzP I think we’re increasingly seeing that these are not side hustles and I’m looking forward to more examples in 2025 showing that the ‘design logic’ of enterprise can be truly reoriented to create more value for every stakeholder. I’d love to hear any examples of regenerative business that you find innovative and inspiring.

This week we virtually brought together our cross-company team of Google colleagues working in sustainability to reflect on progress in 2023 and to look ahead to 2024. As part of this meeting I shared my reflections on the top six global trends that are shaping the sustainability landscape this year. Would love to hear your thoughts too. 1) Half the world's population is going to the polls--sustainability will be on the ballot in many places. 2) Extreme weather and climate impacts are being felt now and getting worse--2023 was hottest year on record. We breached 1.5 C increase from pre-industrial levels for the first time and 2024 will likely bring more of the same especially with El Nino persisting. 3) Individual interest in sustainability--Extreme weather events (among other factors) are also contributing to growing individuals interest in sustainability. We’ve seen searches for “solar energy,” “electric bicycles,” and “electric cars” at all time highs yet there’s a wide “say-do gap” among consumers—between those who are concerned about sustainability, and those who ultimately make sustainable decisions. 4) Critical year to prepare for sweeping EU sustainability disclosure regs--reporting begins in 2026 on FY2025 date. Also awaiting potential new guidance from the SEC. This is changing how companies manage their operations, market their products, and much more. 5) Progress is not linear--Total spending on clear-energy surged 17% last year to $1.8T (BloombergNEF). The world is set to add as much renewable power in the next 5 years as it did in the past 20 (IEA). And yet in the US the rooftop solar market is facing headwinds (residential solar industry is floundering. In late 2023 alone, more than 100 residential solar dealers and installers in the U.S. declared bankruptcy). While in India the PM just made a major new commitment to rooftop solar (cover 10 Million houses across the country within one year. A large line of credit is being made available for the program) 6) Once in a generation moment for AI--Google & BCG shared a report late last year showing the potential for 5-10% in emissions reductions enabled by AI by 2030 through accelerating existing tech. The are also exciting new frontier opportunities with GenAI like ensuring foundational models are excellent on climate science and sustainability and major potential to unlock new ways to produce and interact with sustainability data and reports.

Addressing climate change 🌍 and its impacts remains an urgent global concern 🚨 and demands a transformative approach from the financial sector 💼.   Transition finance has emerged as a pivotal tool 🔧in this pursuit, bridging the gap between traditional green finance 🌱and the imperative to decarbonize high-emitting industries. It directs investments 💰 to decarbonize high-emitting and hard-to-abate industries such as steel 🏗️, aviation ✈️ and shipping 🚢, crucial for achieving net-zero emissions in alignment with the Paris Agreement's goals to keep global warming in check 🌡️.   Transition finance tackles the challenge of inadequate private sector financing for decarbonization activities, overcoming barriers like stranded assets and investor reluctance 🚫💸. To unleash its potential, a robust framework is essential. This entails credible identification of transition activities, stringent reporting practices to prevent greenwashing 📊 and the development of a versatile financial toolbox encompassing debt and equity instruments 🛠️.   Moreover, fiscal incentives and central bank financing facilities play a crucial role in enhancing the bankability of transition projects 💵. Attention to socio-economic impacts, including unemployment and energy shortages, ensures an out-and-out transition with measures like employee reskilling programs 🛤️.   Significant strides have already been made in this domain. For instance, a major UK bank is actively incorporating transition finance into its strategic roadmap, evident in a US$200 million sustainability-linked trade finance facility for a agribusiness conglomerate 🌾. Similarly, a prominent Asian bank launched its Transition Finance Framework at the United Nations' COP28 conference last year 🌏.   However, broader action is imperative. Regulators must provide clarity on eligibility criteria for transition activities, while demonstration projects showcasing the feasibility and benefits of transition finance are essential 🏦📈. Additionally, the establishment of transition funds at both national and international levels can reduce funding costs and risks, attracting private sector investment to accelerate the transition to a sustainable future that creates #longtermvalue for all stakeholders 💚.   #ClimateChange #Decarbonization #SustainableFinance #ESG #RenewableEnergy #NetZero #Greenwashing   https://lnkd.in/gCJVC6eq